FOREIGNERS are fishing for investment opportunities in Malaysia's property sector, riding on the gloomy economy that has made properties cheaper by 15 to 30 per cent, especially in Kuala Lumpur.

Property investment firm Sure Corporate Holdings Sdn Bhd, a unit of UK-based Sure Holdings Ltd (SHL), is looking for properties, but is also tightening its belt now as developers are reluctant to offer discounts on properties still under construction.

"We are not investing over the next quarter. Like most investors, we will watch for sellers to lower their price. We will only buy what we consider to be an absolute bargain that has a real potential for good rental yield," says SHL founder James Pala.

"In my view, condominiums in Mont' Kiara are over priced by 15 per cent. It's greed on the developer's side," Pala told Business Times in Kuala Lumpur.

He said there is also a big gap of property pricing range in KLCC. While a 500 sq ft studio apartment costs around RM600,000, a 5,000 sq ft condominium is priced at RM10 million to RM15 million.

"There is no price correlation. Prices need to be adjusted if developers want to sell," Pala said.

Pala is not new to the Malaysian real estate scene. He has been buying and selling luxury condominiums and expensive landed homes since 1999.

The 34-year-old British born is buying properties to lease to expatriates and foreigners under the Malaysia My Second Home (MM2H) programme.

In its portfolio, it has 50 properties in Mont' Kiara, KLCC, Hartamas and Dutamas, bought in bulk from PJ Development Holdings Bhd, Sunrise Bhd, Mayland Properties and Palam Mesra Sdn Bhd.

Pala says the properties, which are 70 per cent occupied, are leased for RM2,500 to RM10,000 a month, 20 per cent cheaper than a year ago, as depression heightens.

"Our philosophy is to buy high-rise properties in bulk, hold for five years, then sell. For landed properties, we will hold for 5 to 10 years. If the market is good, you can double your money when you sell," he said.

Pala said for new purchases, SHL will stick to areas like Mont' Kiara, Bangsar, Golden Triangle, Sri Hartamas and Dutamas to invest.

It may look at potential growth areas being developed like Segambut.

"Malaysia has a lot of scope for growth. The properties are by far cheaper in comparison to Singapore and Hong Kong, hence making it a viable place to invest," Pala said.

SHL also trades in Fine Vintage French Wines, to complement its property investment business.

"We buy and sell for our private clients and build portfolios for them. They are the same investors who buy our properties," he added.